Second Bank Now Offers Web Banking Services

question 20

Multiple Choice

Second Bank now offers web banking services. Last week a computer glitch posted all web deposit transfers to the wrong accounts. This is an example of

• A)credit risk.
• B)liquidity risk.
• C)stupidity risk.
• D)technological risk.
• E)operational risk.

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Definitions:

Economic Equivalent

A financial concept that refers to the equivalence in value between different sums of money received or paid at different times, based on a specified interest rate.

Previous March

Refers to March of the preceding year or the last March that occurred before the current date.

Original Investment

The initial amount of money invested in a financial venture or asset.

Interest Rate

The specific rate at which interest is incurred on borrowed cash from a lender to a borrower.